Dallas manager Schellas Hyndman said things just didn't work out between the two sides.
"I'm not aware of all the circumstances, but I don't think every ‘i' was dotted and every ‘t' was crossed, so he's back," said Hyndman after training. "And just from my point of view, a breakdown in communication."
Avila returned to practice in Dallas on Wednesday and didn't want to comment on the situation.
"There will be a statement later on," Avila said. "I'm not going to comment on that right now but it should be later on today or tomorrow, but a statement will be available through the club."
The broken deal is a tough one for the young midfielder. Currently, Dallas hasn't needed him or his late game heroics as players like Jackson Goncalves stepping up and Ricardo Villar are looking better in recent games. It will be tough for Avila to see any more playing time with the way things are going but with another USOC game and a Champions League play-in match set for later this month his chance could come soon enough.